The new Singapore-Lao People’s Democratic Republic Avoidance of Double Taxation Agreement (DTA) entered into force on 11 November 2016.

The DTA provides clarity on tax matters and eliminates double taxation relating to cross-border transactions between the two countries.

A DTA between Singapore and another jurisdiction serves to prevent double taxation of income earned in one jurisdiction by a resident of the other jurisdiction.

A DTA also makes clear the taxing rights between Singapore and her treaty partner on different types of income arising from cross-border economic activities between the two jurisdictions.

The agreements also provide for reduction or exemption of tax on certain types of income.

Generally, Singapore’s DTAs and EOI Arrangements include provisions for the exchange of information for tax purposes. Treaty partners may request for information under the DTAs or EOI Arrangements from the Comptroller of Income Tax.